From the beginning Cryptocurrency crash in May 2022, cryptocurrency, in general, has seemingly lacked enthusiasm. However, Bitcoin has seen impressive growth throughout 2023. It has seen gains of 173% to surpass $45,000, marking a 21-month high. This comes as optimism for waves of exchange-traded Bitcoin, but what could this mean for the broader market?
Today, Bitcoin hit a high of $45,925.82, according to Coinbase, which marks the maximum of the last 21 months. Bitcoin peaked around $68,789 in 2021, so while we're still below that, this is still a significant rebound from the $16,600 price we saw this time last year. This rise is due to reports that regulators at the US Securities and Exchange Commission may be willing to approve spot Bitcoin exchange-traded funds (ETFs).
Furthermore, cryptocurrencies have seen a surge due to reports of โgrowing bets that major central banks will cut interest rates this year,โ โthus helping to shake off the gloom that had gripped crypto markets following the FTX collapse and other crypto company failures in 2022.โ Of course, this somewhat follows the election year as the economic landscape adjusts to accommodate political aspirations.
Regardless of the economic impacts, what could this Bitcoin growth mean for the broader tech industry? Over the past year, cryptocurrencies have made more headlines in terms of ransomware and data breaches than significant growth and profits. This increase is likely to be a boon for cybercriminals who have had โdiamond hands,โ so to speak, holding onto assets until they recover. Beyond that, however, it's unclear what will happen, especially when it comes to things like the graphics card shortage, which has recently recovered. Perhaps we will see some pressure being applied to the market, something that companies like NVIDIA would like to see, given the restrictions regarding shipping products abroad.
In any case, it is certainly an interesting time to watch cryptocurrencies and we will have to see how the market develops. If ETFs are approved, we could see Bitcoin's value continue to rise and surpass previous highs.
